Pricing In A Competitive Market (4CE)

Th is course covers how an agent can learn to price properties in a competitive or changing market. The students are introduced to the concepts of appraisal versus a CMA, and the general descriptions of each, as well as the legal obligations that an agent has in Florida with respect to a CMA — when it can be done, what disclaimers apply, etc. With close to 60% of all agents, nationwide, having tenure of less than 5 years in the real estate business, many of them have not experienced what some call a ‘down’ market, and others call a ‘normal’ market. Students will learn how to read supply and demand in a market, calculate absorption rate and critically evaluate what comparable data is still germane. The goal is to learn how to price property properly, to avoid carrying listings for a long time, and als o to not disappoint property owners. Objectives : After taking this class students will be able to: • Define pricing, valuation, appraisals and CMA . • D efine the three methods, or approaches, to value . • H ow Florida Statute 475.612 relates to valuation reports • I dentify the challenges for pricing properties . • K now how to read a market . • E stimate supply and demand . • C alculate and apply the absorption rate . • U nderstand that the ‘market’ is actually comprised of several markets in a geographical area . • U nderstand why some price ranges will always be performing better than others . • E valuate the market to value the property . • H ow “Day’s on Market” Can Affect Pricing and protect the Consumer by adhering to Article 1 of the Realtor® Code of Ethics . Instructor: Caroline Boland